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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale
The composition of the Company’s loan portfolio, excluding residential loans held for sale, at December 31, 2016 and 2015 was as follows:
 
December 31,
  
2016
 
2015
Residential real estate loans
$
802,494

 
$
820,617

Commercial real estate loans
1,050,780

 
927,951

Commercial loans
333,639

 
297,721

Home equity loans
329,907

 
348,634

Consumer loans
17,332

 
17,953

HPFC
60,412

 
77,330

Total loans
$
2,594,564

 
$
2,490,206
Schedule of Loans Made to Related Parties
Loans, including any unused lines of credit, to related parties were as follows:
 
December 31,
  
2016
 
2015
Balance at beginning of year
$
16,628

 
$
17,469

Loans made/advanced and additions
434

 
374

Repayments and reductions
(1,120
)
 
(1,215
)
Balance at end of year
$
15,942

 
$
16,628
Activity in Allowance for Loan Losses by Portfolio Segment
The following table presents the activity in the ALL and select loan information by portfolio segment for the year ended December 31, 2016, 2015, and 2014:
 
Residential Real Estate
 
Commercial Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
HPFC
 
Unallocated
 
Total
For The Year Ended
  December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Beginning balance
$
4,545

 
$
10,432

 
$
3,241

 
$
2,731

 
$
193

 
$
24

 
$
—

 
$
21,166

Loans charged off
(356
)
 
(315
)
 
(2,218
)
 
(308
)
 
(101
)
 
(507
)
 
—

 
(3,805
)
Recoveries
95

 
50

 
332

 
2

 
7

 
—

 
—

 
486

Provision (credit)(1)
(124
)
 
1,987

 
2,400

 
(231
)
 
82

 
1,155

 
—

 
5,269

Ending balance
$
4,160

 
$
12,154

 
$
3,755

 
$
2,194

 
$
181

 
$
672

 
$
—

 
$
23,116

ALL balance attributable loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
483

 
$
1,373

 
$
—

 
$
86

 
$
—

 
$
65

 
$
—

 
$
2,007

Collectively evaluated for impairment
3,677

 
10,781

 
3,755

 
2,108

 
181

 
607

 
—

 
21,109

Total ending ALL
$
4,160

 
$
12,154

 
$
3,755

 
$
2,194

 
$
181

 
$
672

 
$
—

 
$
23,116

Loans:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Individually evaluated for impairment
$
4,348

 
$
13,317

 
$
2,028

 
$
457

 
$
7

 
$
97

 
$
—

 
$
20,254

Collectively evaluated for impairment
798,146

 
1,037,463

 
331,611

 
329,450

 
17,325

 
60,315

 
—

 
2,574,310

Total loan balances
$
802,494

 
$
1,050,780

 
$
333,639

 
$
329,907

 
$
17,332

 
$
60,412

 
$
—

 
$
2,594,564

For The Year Ended
  December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Beginning balance
$
4,899

 
$
7,951

 
$
3,354

 
$
2,247

 
$
281

 
$
—

 
$
2,384

 
$
21,116

Loans charged off
(801
)
 
(481
)
 
(655
)
 
(525
)
 
(154
)
 
—

 
—

 
(2,616
)
Recoveries
55

 
74

 
389

 
188

 
22

 
—

 
—

 
728

Provision (credit)(1)
392

 
2,888

 
153

 
821

 
44

 
24

 
(2,384
)
 
1,938

Ending balance
$
4,545

 
$
10,432

 
$
3,241

 
$
2,731

 
$
193

 
$
24

 
$
—

 
$
21,166

ALL balance attributable loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
544

 
$
644

 
$
92

 
$
89

 
$
—

 
$
—

 
$
—

 
$
1,369

Collectively evaluated for impairment
4,001

 
9,788

 
3,149

 
2,642

 
193

 
24

 
—

 
19,797

Total ending ALL
$
4,545

 
$
10,432

 
$
3,241

 
$
2,731

 
$
193

 
$
24

 
$
—

 
$
21,166

Loans:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Individually evaluated for impairment
$
6,026

 
$
4,610

 
$
3,937

 
$
588

 
$
74

 
$
—

 
$
—

 
$
15,235

Collectively evaluated for impairment
814,591

 
923,341

 
293,784

 
348,046

 
17,879

 
77,330

 
—

 
2,474,971

Total loan balances
$
820,617

 
$
927,951

 
$
297,721

 
$
348,634

 
$
17,953

 
$
77,330

 
$
—

 
$
2,490,206

For The Year Ended December 31, 2014:
Residential Real Estate
 
Commercial Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
HPFC
 
Unallocated
 
Total
ALL:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Beginning balance
$
5,603

 
$
7,206

 
$
3,388

 
$
2,403

 
$
319

 
$
—

 
$
2,671

 
$
21,590

Loans charged off
(785
)
 
(361
)
 
(1,544
)
 
(611
)
 
(143
)
 
—

 
—

 
(3,444
)
Recoveries
165

 
136

 
394

 
19

 
32

 
—

 
—

 
746

Provision (credit)(1)
(84
)
 
970

 
1,116

 
436

 
73

 
—

 
(287
)
 
2,224

Ending balance
$
4,899

 
$
7,951

 
$
3,354

 
$
2,247

 
$
281

 
$
—

 
$
2,384

 
$
21,116

ALL balance attributable loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
787

 
$
78

 
$
10

 
$
—

 
$
78

 
$
—

 
$
—

 
$
953

Collectively evaluated for impairment
4,112

 
7,873

 
3,344

 
2,247

 
203

 
—

 
2,384

 
20,163

Total ending ALL
$
4,899

 
$
7,951

 
$
3,354

 
$
2,247

 
$
281

 
$
—

 
$
2,384

 
$
21,116

Loans:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Individually evaluated for impairment
$
6,411

 
$
5,379

 
$
646

 
$
331

 
$
157

 
$
—

 
$
—

 
$
12,924

Collectively evaluated for impairment
579,057

 
635,282

 
256,869

 
271,378

 
17,100

 
—

 
—

 
1,759,686

Total loan balances
$
585,468

 
$
640,661

 
$
257,515

 
$
271,709

 
$
17,257

 
$
—

 
$
—

 
$
1,772,610


(1)
The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At December 31, 2016, 2015, and 2014, the reserve for unfunded commitments was $11,000, $22,000 and $17,000, respectively.
Schedule of Provision for Credit Losses
he following table reconciles the year ended December 31, 2016, 2015, and 2014 provision for loan losses to the provision for credit losses as presented on the consolidated statement of income:
 
 
 
For the Year Ended
December 31,
 
 
 
2016
 
2015
 
2014
Provision for loan losses
 
 
$
5,269

 
$
1,938

 
$
2,224

Change in reserve for unfunded commitments
 
 
(11
)
 
(2
)
 
(4
)
Provision for credit losses
 
 
$
5,258

 
$
1,936

 
$
2,220
Credit Risk Exposure Indicators by Portfolio Segment
The following table summarizes credit risk exposure indicators by portfolio segment as of the following dates:
 
 
Residential Real Estate
 
Commercial Real Estate
 
Commercial
 
Home Equity
 
Consumer
 
HPFC
 
Total
December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass (Grades 1 – 6)
 
$
789,554

 
$
1,003,386

 
$
321,148

 
$
—

 
$
—

 
$
58,943

 
$
2,173,031

Performing
 
—

 
—

 
—

 
328,287

 
17,328

 
—

 
345,615

Special Mention (Grade 7)
 
2,387

 
5,724

 
5,598

 
—

 
—

 
257

 
13,966

Substandard (Grade 8)
 
10,553

 
41,670

 
5,437

 
—

 
—

 
1,212

 
58,872

Doubtful (Grade 9)
 
—

 
—

 
1,456

 
—

 
—

 
—

 
1,456

Non-performing
 
—

 
—

 
—

 
1,620

 
4

 
—

 
1,624

Total
 
$
802,494

 
$
1,050,780

 
$
333,639

 
$
329,907

 
$
17,332

 
$
60,412

 
$
2,594,564

December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass (Grades 1 – 6)
 
$
802,873

 
$
868,664

 
$
281,553

 
$
—

 
$
—

 
$
70,173

 
$
2,023,263

Performing
 
—

 
—

 
—

 
346,701

 
17,835

 
—

 
364,536

Special Mention (Grade 7)
 
3,282

 
20,732

 
7,527

 
—

 
—

 
3,179

 
34,720

Substandard (Grade 8)
 
14,462

 
38,555

 
8,641

 
—

 
—

 
3,978

 
65,636

Non-performing
 
—

 
—

 
—

 
1,933

 
118

 
—

 
2,051

Total
 
$
820,617

 
$
927,951

 
$
297,721

 
$
348,634

 
$
17,953

 
$
77,330

 
$
2,490,206
Loan Aging Analysis by Portfolio Segment (Including Loans Past Due Over Ninety Days and Non Accrual Loans) and Summary of Non Accrual Loans, Which Include Troubled Debt Restructured Loans, and Loans Past Due Over Ninety Days and Accruing
The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include TDRs, and loans past due over 90 days and accruing as of the following dates:
 
30 –  59 Days Past Due
 
60 – 89 Days Past Due
 
Greater Than 90 Days
 
Total Past Due
 
Current
 
Total Loans Outstanding
 
Loans > 90 Days Past Due and Accruing
 
Non-Accrual Loans
December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,783

 
$
924

 
$
2,904

 
$
5,611

 
$
796,883

 
802,494

 
$
—

 
$
3,945

Commercial real estate
855

 
223

 
12,625

 
13,703

 
1,037,077

 
1,050,780

 
—

 
12,849

Commercial
633

 
218

 
1,675

 
2,526

 
331,113

 
333,639

 
—

 
2,088

Home equity
892

 
134

 
1,321

 
2,347

 
327,560

 
329,907

 
—

 
1,620

Consumer
38

 
—

 
4

 
42

 
17,290

 
17,332

 
—

 
4

HPFC
438

 
688

 
110

 
1,236

 
59,176

 
60,412

 
—

 
207

Total
$
4,639

 
$
2,187

 
$
18,639

 
$
25,465

 
$
2,569,099

 
$
2,594,564

 
$
—

 
$
20,713

December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
3,325

 
$
571

 
$
6,077

 
$
9,973

 
$
810,644

 
$
820,617

 
$
—

 
$
7,253

Commercial real estate
4,219

 
2,427

 
1,584

 
8,230

 
919,721

 
927,951

 
—

 
4,529

Commercial
267

 
550

 
1,002

 
1,819

 
295,902

 
297,721

 
—

 
4,489

Home equity
643

 
640

 
1,505

 
2,788

 
345,846

 
348,634

 
—

 
1,933

Consumer
112

 
7

 
118

 
237

 
17,716

 
17,953

 
—

 
118

HPFC
165

 
—

 
—

 
165

 
77,165

 
77,330

 
—

 
—

Total
$
8,731

 
$
4,195

 
$
10,286

 
$
23,212

 
$
2,466,994

 
$
2,490,206

 
$
—

 
$
18,322
Troubled Debt Restructuring and Specific Reserve Related to TDRs
The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ALL as of December 31:
 
 
Number of Contracts
 
Recorded Investment
 
Specific Reserve
 
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Residential real estate
 
21

 
22

 
$
3,221

 
$
3,398

 
$
483

 
$
544

Commercial real estate
 
3

 
6

 
1,008

 
1,459

 
—

 
48

Commercial
 
10

 
9

 
1,502

 
399

 
—

 
11

Consumer and home equity
 
1

 
1

 
16

 
21

 
—

 
—

Total
 
35

 
38

 
$
5,747

 
$
5,277

 
$
483

 
$
603
Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment
The following represents loan modifications that occurred for the year ended December 31, 2016, 2015 and 2014 that qualify as TDRs and the type of loan modification made by portfolio segment at December 31:
 
 
Number of Contracts
 
Pre-Modification
Outstanding
Recorded Investment
 
Post-Modification
Outstanding
Recorded Investment
 
Specific Reserve
 
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Residential real estate:
 


 


 
 
 


 


 
 
 


 


 
 
 


 


 
 
Maturity concession
 
—

 
—

 
1

 
$
—

 
$
—

 
$
136

 
$
—

 
$
—

 
$
149

 
$
—

 
$
—

 
$
43

Court ordered
 
—

 
1

 
—

 
—

 
74

 
—

 
—

 
78

 
—

 
—

 
27

 
—

Commercial real estate:
 


 


 
 
 


 


 
 
 


 


 
 
 


 


 
 
Maturity concession
 
—

 
—

 
1

 
—

 
—

 
235

 
—

 
—

 
235

 
—

 
—

 
—

Commercial:
 


 


 
 
 


 


 
 
 


 


 
 
 


 


 
 
Maturity concession
 
6

 
—

 
—

 
2,973

 
—

 
—

 
2,973

 
—

 
—

 
1,400

 
—

 
—

Court ordered
 
—

 
—

 
3

 
—

 
—

 
77

 
—

 
—

 
77

 
—

 
—

 
6

Home equity:
 


 


 
 
 


 


 
 
 


 


 
 
 


 


 
 
Principal forgiveness and maturity
 
—

 
—

 
1

 
—

 
—

 
40

 
—

 
—

 
30

 
—

 
—

 
—

Total
 
6

 
1

 
6

 
$
2,973

 
$
74

 
$
488

 
$
2,973

 
$
78


$
491

 
$
1,400

 
$
27

 
$
49


loans that had been modified as a TDR within the previous 12 months and for which the borrower subsequently defaulted for the periods indicated
Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment
The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for the year ended December 31, 2016, 2015 and 2014:
 
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
Average Recorded Investment
 
Interest Income Recognized
December 31, 2016:
 
 
 
 
 
 
 
 
 
 
With related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
$
3,019

 
$
3,019

 
$
483

 
$
3,088

 
$
106

Commercial real estate
 
11,443

 
11,443

 
1,373

 
5,165

 
—

Commercial
 
—

 
—

 
—

 
762

 
—

Home equity
 
299

 
299

 
86

 
305

 
—

Consumer
 
—

 
—

 
—

 
—

 
—

HPFC
 
97

 
97

 
65

 
98

 
—

Ending Balance
 
14,858

 
14,858

 
2,007

 
9,418

 
106

Without related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
1,329

 
1,800

 
—

 
2,057

 
9

Commercial real estate
 
1,874

 
2,369

 
—

 
2,214

 
51

Commercial
 
2,028

 
3,209

 
—

 
2,507

 
16

Home equity
 
158

 
368

 
—

 
180

 
—

Consumer
 
7

 
10

 
—

 
12

 
—

HPFC
 
—

 
—

 
—

 
—

 
—

Ending Balance
 
5,396

 
7,756

 
—

 
6,970

 
76

Total impaired loans
 
$
20,254

 
$
22,614

 
$
2,007

 
$
16,388

 
$
182

December 31, 2015:
 
 
 
 
 
 
 
 
 
 
With related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
$
3,191

 
$
3,191

 
$
544

 
$
6,064

 
$
112

Commercial real estate
 
1,825

 
1,857

 
644

 
1,753

 
—

Commercial
 
156

 
156

 
92

 
945

 
2

Home equity
 
303

 
303

 
89

 
900

 
—

Consumer
 
—

 
—

 
—

 
195

 
—

HPFC
 
—

 
—

 
—

 
—

 
—

Ending Balance
 
5,475

 
5,507

 
1,369

 
9,857

 
114

Without related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
2,835

 
4,353

 
—

 
2,175

 
8

Commercial real estate
 
2,785

 
3,426

 
—

 
2,719

 
65

Commercial
 
3,781

 
4,325

 
—

 
1,412

 
17

Home equity
 
285

 
688

 
—

 
369

 
—

Consumer
 
74

 
150

 
—

 
20

 
—

HPFC
 
—

 
—

 
—

 
—

 
—

Ending Balance
 
9,760

 
12,942

 
—

 
6,695

 
90

Total impaired loans
 
$
15,235

 
$
18,449

 
$
1,369

 
$
16,552

 
$
204

 
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
Average Recorded Investment
 
Interest Income Recognized
December 31, 2014:
 
 
 
 
 
 
 
 
 
 
With related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
$
4,468

 
$
4,468

 
$
787

 
$
9,254

 
$
125

Commercial real estate
 
1,140

 
1,140

 
78

 
4,721

 
—

Commercial
 
183

 
183

 
10

 
2,366

 
8

Home equity
 
—

 
—

 
—

 
1,428

 
—

Consumer
 
140

 
140

 
78

 
348

 
—

Ending Balance
 
5,931

 
5,931

 
953

 
18,117

 
133

Without related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
1,943

 
2,604

 
—

 
2,257

 
7

Commercial real estate
 
4,239

 
4,502

 
—

 
2,869

 
40

Commercial
 
463

 
606

 
—

 
791

 
11

Home equity
 
331

 
581

 
—

 
399

 
—

Consumer
 
17

 
37

 
—

 
21

 
—

Ending Balance
 
6,993

 
8,330

 
—

 
6,337

 
58

Total impaired loans
 
$
12,924

 
$
14,261

 
$
953

 
$
24,454

 
$
191
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination (costs) fees totaling:
 
 
December 31,
 
 
2016
 
2015
Net unamortized fair value mark discount on acquired loans
 
$
8,810

 
$
13,083

Net unamortized loan origination (costs) fees
 
(66
)
 
370

Total
 
$
8,744

 
$
13,453